If the USprice Level Is Increasing by 3 Percent Annually and the and the Japanese

question 77

Multiple Choice

If the U.S.price level is increasing by 3 percent annually and the Japanese price level is increasing by 1 percent annually,then according to purchasing-power parity,by about what percent would the nominal exchange rate be changing?

• A)decreasing by 4 percent
• B)decreasing by 2 percent
• C)increasing by 4 percent
• D)increasing by 2 percent

---

Definitions:

Performance Indicators

Quantitative or qualitative factors used to objectively measure the effectiveness, quality, or impact of an activity, organization, or system.

Government Funding

Financial assistance provided by the government to support a variety of activities, including public services, research, education, and projects benefiting the community.

Postsecondary Institution

An educational institution that offers studies beyond the secondary level, including universities, colleges, and vocational schools.

Class Sizes

Refers to the number of students in a classroom or educational setting, which can impact teaching methods and student learning outcomes.